Template-Type: ReDIF-Article 1.0

Author-Name: Péter Fáykiss
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: faykissp@mnb.hu

Author-Name: Dániel Papp
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: pappd@mnb.hu

Author-Name: Péter Sajtos
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: sajtosp@mnb.hu

Author-Name: Ágnes Tőrös
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: torosa@mnb.hu

Title: Regulatory Tools to Encourage FinTech Innovations: The Innovation Hub and Regulatory Sandbox in International Practice

Abstract: In our study, we assess the regulatory tools that can be applied to encourage FinTech
innovations, also focusing on the aims of financial stability. After reviewing the
opportunities and risks of FinTech innovations from micro- and macro-prudential
aspects and in terms of consumer protection, we present the kinds of possible
regulatory responses to the challenges raised by FinTech phenomena and the
regulatory tools which are applied in international practice. We analyse these
practices from the aspect of legal implementation, detailing their similarities and
differences. Finally, we briefly present Hungarian regulatory initiatives encouraging
FinTech innovations. An assessment of international cases reveals that there is no
generally effective, standardised solution that meets every geopolitical requirement:
when the concepts are developed, the special features of the financial intermediary
system of the given country and the level of financial culture must also be taken
into account.

Classification-JEL: K2, G28, F39
Keywords: financial stability, fintech, innovation hub, regulatory sandbox
Pages: 43-67
Volume: 17
Issue: 2
Year: 2018
File-URL: http://english.hitelintezetiszemle.hu/letoltes/fer-17-2-st2-faykiss-papp-sajtos-toros.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:17:y:2018:i:2:p:43-67